You are the lawyer for monopoly. Your client has been charged with the following and will be having a jury trial.

a. rampant inefficiency

b. stifling progress

c. destroyer of wealth

d. limiting innovation and progress.

You will write a closing statement refuting these charges and explain why the jury should find your client not guilty.

Your closing statement must answer:

(a) Explain why firms may not always pursue the goal of profit maximization.

(b) In monopoly, economic (abnormal) profit can be earned in both the short run and the

long run. Examine the role of barriers to entry in earning economic profit.